Short SPY From $144.00 Level

MrTopStep.com

By: Gareth Soloway


Stock/Futures: SPY, S&P, $ES

Sentiment: Short

Title: Short SPY From $144.00 level

One month ago the SPDR S&P 500 ETF Trust (SPY) was trading at $134.75. Panic was rampant in the media as stocks like Apple Inc. (AAPL) collapsed lower. The media and analysts on CNBC advised investors to run for the hills as the fiscal cliff loomed large.
I sat looking at the charts, watching the S&P 500, NASDAQ and Dow Jones Industrial Average. I could not see the markets going lower. The charts just did not confirm what the media and analysts were saying. I used the PPT Methodology, a proprietary strategy developed over the last decade to analyze the charts. Once again, I saw upside in the charts, not downside. The calculations were showing a move on the SPY to $144.00. Wow. A $10.00 move on the SPY to the upside while everyone was ready to jump off a cliff.
I advised my members to start buying stocks. Trade alerts went out to buy Chevron Corporation (CVX), International Business Machines Corp. (BM) and other large caps. Within days, the market was soaring higher and within the last few days, the market hit the SPY target of $144.00. Profits were taken.
Once this target was achieved, I started to warn of downside. The PPT Methodology, this proprietary strategy that I had spent so much time developing was giving a sell signal. "Be ready for a pull back today", I warned members. Sure enough, the SPDR S&P 500 ETF Trust (SPY) is trading at $142.61, -0.93 (-0.65%).
Going forward into the end of the year, look for a little more downside but not the same type of flush we saw a month ago. Small shorts can be taken (I have already). Once the fiscal cliff issue has been resolved, the markets will see a near term pop which can be faded. Further downside is likely after.

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fcx12.06.12 pic

fcx12.06.12 pic

Gareth Soloway
www.InTheMoneyStocks.com

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